EnleashedEnleashed
Fix the energy market
Draft

Zonal Marginal Pricing

A wholesale architecture in which electricity is priced within geographic bidding zones, inter-zonal congestion affects market prices and residual internal congestion is managed through redispatch.

Solution section

Distribution & DER

How distribution networks, households and distributed resources participate.

Distribution & DER

Distribution constraints are generally outside the core zonal wholesale optimisation.

DER can participate through:

  • aggregators;
  • retailers;
  • local flexibility arrangements;
  • national or regional balancing products where eligible.

The architecture therefore improves transmission-level locational granularity without automatically solving distribution-level coordination.